TC Minutes 04-23-1991MINUTES OF THE-REGULAR MEETING OF THE TOWN
COUNCIL,HELD APRIL 23, 1991 - 7:30 P.M.
The regular meeting of the Avon Town Council,of the Town of Avon,
Colorado, was held in th'e Municipal Building, 400 Benchmark Road,
Avon, Colorado, in the Council Chambers.
The meeting,was called to order by Mayor Jerry Davis at 7:34 p.m.-
A roll call was taken with David Garton, Albert Reynolds, Gloria
McRory, Jim Stovall and Tom Ptach present. Councilman Bennett was
absent. Also present were-Town Attorney John Dunn, Town Manager
Bill-James, Director of Engineering Norm Wood, Director of Municipal
Services Larry Brooks, Police Chief Art Dalton, Fire Chief Charlie
Moore, Director of Community Development Rick Pylman, Public Relations
Officer Teresa Albertson,'Town Clerk Patricia J. Doyle, as well as
members of the press and public.
The Mayor called for Citizen Input.
Debbie Comerford, candidate for the Eagle County School District
Board, approached the Council. Ms. Comerford stated that she would
like to hear from the Council and listen to their concerns in respect,.
to the School Board.
Mayor Davis stated that one of the concerns was the issue of the School
Finance Act. He felt that the school board needed to join with other-
school districts, to lobby legislatures that counties like Eagle should
not have to be paying 90-95%-on their own school taxes. He stated that
the School Finance Act did equalize money to all districts to take from
the rich and give to the poor. He felt that-people have been mislead
to'believe that the.school board was responsible for budget cuts. He
stated that his other concern was that residents were being taxed more
and more and they were receiving less benefits for their children.
Councilman Garton had a concern in the schools that English being a
second language. He stated that he was one hundred percent against-
forcing.Spanish Students to take Spanish. He stated that all their
time should be spent on the English language.
Councilman-Stovall felt that there was no direction in the School District.
Ms. Comerford reviewed her four concerns:
1. The Budget
2. Communication
3. -No direction,-there needed to be stronger guidelines.
4. Need the"best education for the children, there needed to-be a
roll model.
After some discussion, the Mayor thanked Ms. Comerford for her comments.
There being no further Citizen Input, the Mayor closed that portion of
the agenda.
Second reading of Ordinance No. 91-4, Series of 1991, AN ORDINANCE
AMENDING THE WILDRIDGE SPA PLAN BY AMENDING THE LAND USE DESIGNATION
OF LOT 38, BLOCK 2, WILDRIDGE SUBDIVISION, FROM DUPLEX USE TO TWO
FAMILY LOTS.
Rick Pylman stated that there was specific items to this issue.
One was Ms. Schneiderman's request, and the other was the general issue
of determining a policy on criteria for dividing duplex lots into
single family lots. Staff has completed a great deal of research on
this issue. He stated that it proved to be a very complex issue
and this should be throughly thought through before making any kind of
decision. Therefore, staff recommended that Council take action on
Ms. Schneiderman's request and then place a moratorium on this issue
until a minimum lot size criteria was in place. Staff was requesting
input from the Wildridge residents as well as the property owners before
making a determination. He stated that Ms. Schneiderman's request
did comply with the lot size. It did meet that set backs and site
coverage.
The Mayor called for public hearing.
Derek Pysher, resident of Avon, approached the Council. He felt the
Council should take a good look at this issue, the reason being that people
who bought in Wildridge bought for a particular purpose, they bought
because it was a remote area and not compact as Eagle-Vail was. He stated
that this may unbalance property values. He felt that most of the
people that were interested in pursuing subdividing their lots, were
not really interested in the future of Wildridge. He asked that Council
take time to review this issue very carefully.
Jerry Vermonti, part owner of Lot 36 of Wildridge, approached the Council.
He stated that it was very unprofessional for the Council to approve
Ms. Schneiderman's project in lieu of Mr. Pylman's comments. He stated
that taking a separate individual, give them approval, and then restrict
others in the future, to him, was not proper. He stated that this
should be reviewed by the Wildridge property owners. He felt that this
issue should be resolved before approving anyone, including Ms.
Schneiderman's request.
Another resident of Avon and owner of a Lot in Wildridge requested that
the Council take their time and evaluate this issue. She was concerned
of depleting the open space in Wildridge.
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Ms. Schneiderman discussed the two issues that were brought up by
the property owners. She stated that she did not have a lot to do
with their values, or impact that would be caused by her two single
family homes. She stated that a precedent had already been set when
the Commission allowed the developer to subdivde a multi-family lot
into twelve single family homes. This was taken on a per case merit
basis. She stated that her particular lot did lend itself toward this.
She did not want to be living on top of someone else. She stated that there
were no minimum or maximum square footage buildable criteria anywhere
in Avon. In the Town of Avon floor, where there were duplexes built
within the setback to each other, it had created very little open space
and with that issue not being addressed, she felt it was hypocritical
not to approve her project even with a 20 foot set back, which would give
more green space then if someone built a duplex and filled the entire
lot. The homes would be approximately 1700 square feet and the side
and back set back would be 20 to 25 feet. She stated the second home
would also be less than 2000 square feet, it would be a two story
home.
The Mayor closed the public hearing and entertained a roll call.
Councilman Garton moved approval of Ordinance No. 91-4, Series of
1991 on second reading contingent upon the owner making the 20 foot
set back on the side and back lot lines. The motion was seconded by
Councilman Reynolds.
The Mayor called for a roll call.
Those Councilmembers voting aye were David Garton, Gloria McRory,
Albert Reynolds and Jim Stovall. Councilman Ptach opposed.
The motion carried by a 4 to 1 vote.
Resolution No. 91-10, Series of 1991, A RESOLUTION APPROVING FINAL PLAT
OF LOT 38, BLOCK 2, WILDRIDGE SUBDIVISION, TOWN OF AVON, EAGLE COUNTY,
COLORADO
Councilwoman McRory moved approval of Resolution No. 91-10, Series of
1991. The motion was seconded by Councilman Reynolds and was unanimously
carried.
Resolution No. 91-11, Series of 1991, A RESOLUTION IN RESPECT TO A
MORATORIUM FOR APPLICATIONS FOR THE RESUBDIVISION OF DUPLEX LOTS WITHIN
THE WILDRIDGE SPECIALLY PLANNED AREA
The Town Council felt that November 1, 1991
moratorium and suggested that the resolution
1991.
was too long for this
be change to read July 1,
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After some discussion, Councilwoman McRory moved approval of Resolution
No. 91-11, Series 1991.
After further discussion Councilwoman McRory withdrew her motion.
Councilman Ptach moved approval of Resolution No. 91-11, Series of 1991
contingent upon the amendments in items 2 and 3, changing the date from
November 1, 1991 to July 1, 1991, adding all multi-family lots to the
resolution. Also with the exception for the lots that have committed
official application and paid their fees for review. The motion was
seconded by Councilman Stovall and was unanimously carried.
First reading of Ordinance No. 91-5, Series of 1991, AN ORDINANCE
CONCERNING THE ACQUISITION OF A FACILITY TO BE USED FOR MUNICIPAL
OFFICES AND OTHER PURPOSES OF THE TOWN OF AVON, COLORADO; AUTHORIZING
AND APPROVING A LEASE-PURCHASE AGREEMENT, A COMMERCIAL CONTRACT TO
BUY AND SELL REAL ESTATE AND RELATED DOCUMENTS AND TRANSACTIONS;
RATIFYING ACTION HERETOFORE TAKEN AND RELATING TO SUCH FACILITY AND
LEASE-PURCHASE AGREEMENT; PROVIDING OTHER MATTERS RELATING THERETO;
AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH.
Bill James stated that there was considerable discussion on this issue
at the Council work shop. He stated that Dennis Craig, representing
Peregrine Group was present. Jerry Butler and Bill Barbush also were
present. They were the owners of the Grand-on-Avon. The potential
lender for a new loan, Michael Blumenthal was also present to answer
any questions that the Council may have.
Mr. James stated that hopefully it was at a point where the Council
could consider first reading of Ordinance No. 91-5, which provided
that the Town of Avon could help complete the building by purchasing
10,000 square feet of commercial space in the amount of one million
dollars. It was the Town's intent to use that space for municipal
purposes, for at least 5,000 square feet and possibly another 2,000
square feet for offices. Mr. James reviewed a key document, which was
an addendum to the commercaial contract to buy and sell real estate
(See addendum attached to these minutes).
Mr. James stated that there were a couple of concerns that were not
included in the document:
1. To research to see if the Bonds could be taxable or not taxable,
the reason being that the Town would consider leasing out some of that
space.
2. Could there be a third Deed of Trust so the Town could re-sell the
space back to the Grand-On-Avon at a later date.
3. To determine the value of commercial space in the Avon area.
4. There was concern of parking.
5. The concern of the timing of completion. If the building was not
completed by a certain date, the Bond Issue would no longer exist.
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Jerry Butler gave a brief history summary of the Peregrine/Grand-On-
Avon project.
Dennis Craig gave a brief history of the building. He stated that there
were 32 companies that formed the Joint Venture Group that worked on the
original project, and foreclosed seven separate S&L's out that went
into receivership.
Councilwoman McRory had a concern of the parking for the building. She
suggested that the owners look at assigned parking for the 10,000
square feet.
Bill Barbush had a concern with that request. He stated that if that
were given, they would have to provide assigned parking for each marchant.
He stated that they would look at that.
Councilman Garton moved approval of Ordinance No. 91-5, Series of 1991
on first reading. The motion was seconded by Councilman Reynolds.
The Mayor called for a roll call.
Those Councilmembers voting aye were David Garton, Albert Reynolds,
Gloria McRory, Jim Stovall and Tom Ptach. There were no nay votes.
The motion was unanimously carried.
The Council recessed at 9:05 p.m. and reconvened at 9:15 p.m.
Resolution No. 91-9, Series of 1991, A RESOLUTION SUMMARIZING EXPENDITURES
AND REVENUES FOR EACH FUND AND AMENDING THE 1991 BUDGET FOR THE TOWN
OF AVON, COLORADO.
The amendment to the budget of $5,000 was in respect to miscellaneous
expenses for the Wildwood Townhomes. Mr. James stated that instead
of amending the budget for $5,000, he would like to approach it to begin
to pay the fees into a Accounts Receivable Fund. This would be an
easier way to handle this item.
It was the consensus of the Council to void this resolution.
Next on the agenda was the final draft of the Zoning Revisions.
Rick Pylman stated that they had set the following schedule:
April 30th, 1991, was a public meeting in which the public would be
invited for their input; May 7th, the zoning revisions would be taken
to the Planning and zoning Commission for formal review; May 14th,
the zoning revisions would be brought before the Council for first reading
of the ordinance and then second reading would take place on May 28th.
He stated that there were a couple issues that needed to be discussed
that were not included in the code.
1. The accessary apartment square footage ratio in the shopping center
district and the neighborhood commerical district.
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2. Single family lots size - they have increased that size from
5,000 square feet to 7,500 square feet.
3. A concern of the Planning Commission was to allow employee housing
in a Park District. Possibly go to two different districts; one for
municipal buildings and employee housing and one for park uses.
4. In the duplex zone district, which was basically on West Beaver
Creek Boulevard, they were allowing a caretaker unit within the
duplexes. The way it was worded previously, was two accessory units
per duplex unit. Mr. Pylman suggested that the Council may want to
change that to one accessory unit.
Next on the agenda was discussion of the Forest Service Land Exchange.
Mr. James stated that he had met with the Forest Service representative
and Harold Williamson to review the possibilities of a land exchange
between the two of them and the Town. He stated that the Forest
Service recommended that the Town have a preliminary appraisal completed
on the two properties. The appraisal would run between $7,000 to
$10,000.
The Council directed Mr. James to meet with the appraiser to see if
that cost could be cut, possibly to $5,000.
It was the consensus of the Council to allow staff to destroy the
Council recording tapes and the Planning and Zoning Commisssion's
recording tapes after a two year period of time. Also, that the
recording of the work sessions be deleted.
John Dunn's report was next presented to the Council. Mr. Dunn stated
that there was a Hearing in District Court in Eagle in Judge Jones's
Court on Immediate Possession of the second Confluence parcel to be
acquired. Immediate Possession was granted. The Court required
a deposit of $4,906.80.
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The Mayor report was next on the agenda.
Mayor Davis stated that the Transportation Task Force meeting was
scheduled for April 24, 1991 at 8:30 a.m.
The Colorado Municipal League Conference was scheduled for June, 1991.
All Councilmembers and staff were invited.
The Mayor had received a letter from Governor Romer. He was requesting
that the Town of Avon consider donating a street light or some
streetscape item to the Town of Limon. The Council directed the Town
Manager to call the Town of Limon to see what they might need.
There was a Transportation Meeting to be held in Grand Junction on
Monday, April 29, 1991. Larry Brooks would attend.
Under other business:
Mr. James presented the Council with a draft of the Financial Statement
for 1990. The auditors would be at the work session of May 14th to
answer any questions the Council may have.
Rick Pylman presented the Council with a copy of the Transportation
Master Plan. This document would be presented to the public on Monday,
May 13, 1991 and then to Council on May 14th.
The Financial Matters were next presented to the Council.
Councilman Ptach moved to receive items 7#1 through #4. The motion was
seconded by Councilwoman McRory and was unanimously carried.
Councilman Ptach moved approval of the General Fund of Accounts Payable
for April 23, 1991. The motion was seconded by Councilwoman McRory and
was unanimously carried.
Councilman Ptach moved approval of the Reconciliation Sheet of Accounts
Payable for April 23, 1991. The motion was seconded by Councilwoman
McRory and was unanimously carried.
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w
Councilwoman McRory moved approval
meeting minutes as presented. The
Ptach and was unanimously carried.
0
of the April 9, 1991 Council
motion was seconded by Councilman
Councilwomlan McRory moved to continue the Council Meeting until
April 30, 1991. The motion was seconded by Councilman Ptach.
The meeting was continued until April 30, 1991. The Council then
retired at 9:50 p.m.
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The Council reconvened on April 30, 1991 at 6:00 p.m.
A roll call was taken with David Garton, Albert Reynolds, Gloria
McRory, Jim Stovall Mayor Jerry Davis and Tom Ptach present.
Councilman Bennett was absent.
The meeting continued with the Council interviewing applicants for
the Planning and Zoning Commission vacant seats.
At the conclusion of the interviews, the Council appointed the
following to the Planning and Zoning Commission:
Patti Dixon, Albert Reynolds, Jr., Henry Vest and Derek Pysher. Their
terms would be for two years.
There being no further business to come before the Council, Council-
woman McRory moved to adjourn. The motion was seconded by Councilman
Ptach. The meeting was adjourned by Mayor Davis at 7:00 p.m.
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ADDENDUM TO COMMERCIAL CONTRACT
TO BLTY AND SELL REAL ESTATE
DATED APRIL __9 19919
BY AND BETWEEN
THE TOWN OF AVON, A COLORADO MUNICIPAL CORPORATION,
PURCHASER,
AND GRAND ON AVON, A MINNESOTA GENERAL PARTNERSHIP,
SEDER
This Addendum to Commercial Contract to Buy and Sell Real Estate
("Addendum') supplements and amends that certain form Commercial Contract to Buy.and Sell
Real Estate (the "form Contract!). In the event of a conflict between this Addendum and the
form Contract the provisions of this Addendum shall prevail. Together, this Addendum and
the form Contract are sometimes referred to as "this Contract".
1. Payment of Purchaser's Costs. Purchaser hereby acknowledges receipt
from Seller of the sum of 5500.00 to be used for Seller's costs in connection with preparing
this Contract, and with obtaining related legal and financial advice. Seller agrees that when
the Purchaser has drafted an ordinance authorizing this transactippn and the financing thereof
and such ordinance has been passed at first reading, Seller snail` immediately thereafter pay to
Purchaser an additional $5,000.00 to be used by Seller for the same purposes. In the event
that for any 'reason Purchaser and Seller are unable to enter into this Contract or the Contract
is terminated, Purchaser shall refund to Seller any unused portion of .such funds, and shall
provide to Seller a written accounting of its use of the remainder of such funds.
2. Deposit of 9hase Pace into Escrow. When the ordinance authorizing
this transaction and the financing thereof has been finally adopted, Purchaser shall' diligently
work to complete its financing and upon closing of such financing shall deposit into escrow the
amount of 51,000,000, to be used for the purchase price, in accordance With the terms and
conditions of an escrow agreement agreed to by the parties (the "Escrow Agreement"). Among
other terms and conditions, the Escrow Agreement shall include the following provisions:
a. The escrow funds shall be deposited in an interest-bearing account
or accounts acceptable to Purchaser, with all interest or other income thereon for the benefit
of Purchaser.
b. Concurrently with the deposit of the escrow funds, Seller shall
(i) .pay 'to Purchaser an amount equal to its costs and expenses to date related to the
Purchaser's proposed financing, including the costs of legal and financial advice, and Purchaser's
carrying costs in connection with such money, and (ii) agree to pay any additional costs and
expeases in connection therewith as and when incurred, provided Seller's obligations under this
subparagraph shall not exceed $60,000. Seller's payment obligations shall be adequately secured
to Purchaser's satisfaction.
C. The escrow funds shall be used at the closing of this transaction
provided all of the conditions of this Contract are fulfilled and Seller is ready, wiling and able
to perform its obligations at closing; otherwise, the escrow funds shall be released to Purchaser.
d. If at anytime after the escrow is established and prior, to the
closing, Seller is in breach of this Contract or the Escrow Agreement, or if Purchaser
reasonably concludes that the closing conditions set forth in paragraph 3 hereof will not or
cannot within a reasonable time be fulfilled, . Purchaser may at Purchaser's sole discretion
terminate the escrow and the escrow funds, together with any interest thereon, shall be
promptly returned to Purchaser.
3. Conditions of Closing.
a. Approval of Condominium Map and Documents. The parties
acknowledge that the Property to be acquired by Purchaser shall be a commercial condominium
unit in a to-be-formed condominium regime. All aspects of such condominium regime,
including the map, the exact location and dimensions of the Property, the articles of
incorporation, the by-laws and any rules and regulations, shall be subject to Purchaser's written
approval, which approval may be granted or denied in Purchaser's sole discretion. 'Such right
of approval shall include, without limitation, the use of common areas within and around the
Building and the allocations of common area costs and expenses. At, the closing, the
condominium association must be operating, with adequate reserves established for taxes,
insurance, replacements and, maintenance- The hazard and fire insurance for the Building shall
be in effect and the policies therefor shall be subject to Purchaser's approval.
b. Environmental Matters. Seller shall deliver to Purchaser any and
all reports, surveys or, information available to Seller related to the environmental condition of
the Building and the Building Land and the existence of any environmental waste or hazardous .
materials located on or in any way affecting the Building or Building Land. In this connection,
and as an inducement to Purchaser to enter into this Contract, Seller hereby warrants that the
Budding and Building Land are free and clear of any hazardous waste or material, that no
asbestos has been used in connection with the construction of any of the improvements on the
Building Land, and no use of such property is in violation of any enviro=ental or land use'
laws, rules or regulations. has occurred, is occurring or will be permitted. In Purchaser's sole
discretion, it may obtain an environmental audit of the Building and Building Land, and if for
any reason Purchaser is dissatisfied with the environmental condition thereon Purchaser may
terminate this Contract.
C. Ty-free Financing. The parties acknowledge that Purchaser
intends to finance its purchase of the Property with tax-free financing. Purchaser's obligations
hereunder are specifically conditioned upon its obtaining such financing in a timely manger at
such rates and upon terms and conditions as are acceptable to Purchaser in its sole discretion.
d. Completion of Building. In the event the Building is not yet
completed when escrow opens, Purchaser shall have the right to approve the plans and
specifications and budget for the completion of the Building, and shall be satisfied in its sole
discretion that Seller has the ability and adequate financing to assure the timely completion of
the Budding in accordance with the approved plans and specifications. Prior to closing, Seller
shah provide such evidence as may be -reasonably required that there is no violation at the
Property or theBuilding of zoning, building, fire, air pollution or health laws or regulations,
and that there are no suits pending or threatened which could affect the Building or the
Property.
e. Buindout of Property. Prior to closing Setter shall have completed
at Seller's expense the improvements of 5,400 square feet of the Property in accordance with
plans and specifications approved by Purchaser is its sole discretion. Purchaser shall have
inspected and be satisfied with the completed construction and an unconditional certificate of
occupancy shall have been issued for the Property, and Purchaser shall be able to fully utilize
the Property for its intended purpose without any conditions or delay whatsoever. Lien waivers
shall have been obtained for all labor, and material used in connection with such improvements.
f Further Agreements of Seller. Seller shall deliver into escrow, to
be delivered to Purchaser at closing, written agreements in form and substance satisfactory to,
Purchaser, whereby Seller is obligated to pay to Purchaser after closing (i) for each year from
1991 through, 1995, inclusive, an amount equal to the lesser of (a) $75,000 or (b) one-half of
the purchaser's annual debt-service obligations in connection with the financing described in
subparagraph Ic. hereof, and (ii) during each year until such time as the Building is completed,
assessed for property taxes purposes and taxed at full value, the amount, if any, by which
$100,000 exceeds the amount of property taxes payable to the Town of Avon on account of
the Building and the Building Land. Such obligations of Seller Shan be adequately secured to
Purchaser's satisfaction.
4: Seller's Warranties and Representations. Effective as of the date hereof
Seller warrants and represents as follows:
Authority: Seller is the sole owner of the Property and possesses an right,
authority and power to execute and perform this Agreement. '
Leases: There are no Leases, recorded or unrecorded, affecting the
Property.
5. Binding . This Contract shall be binding on Purchaser only when
it has been authorized by all necessary action of the government of the Town of Avon. This
Contract shall inure to the benefit of and be binding upon all permitted assigns and successors
of the parties.
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